Fiduciary

A fiduciary is an individual or institution that is legally and ethically required to act in the best interest of their clients. This applies to financial advisors, investment managers, and trustees who manage money on behalf of others.

Fiduciary vs. Non-Fiduciary Advisors:

• Fiduciaries: Must prioritize the client’s best interest, even if it means lower fees or commissions for themselves.
• Non-fiduciaries: Can recommend investments that benefit them financially, as long as they are “suitable” for the client.

A fiduciary financial advisor is less likely to push high-fee products and must disclose conflicts of interest. Investors seeking financial guidance should always ask whether an advisor is a fiduciary to ensure unbiased advice.